At the time of the commencement of this Act, the land owner's rights in the uncultivated land where the income has been paid by the farmer to the owner of the land will be registered in the name of the farmer in the prescribed number. But:-

(1) If the farmer is a foreign citizen or later becomes a foreign citizen, the uncultivated land plowed by him will be registered in the name of the Nepalese government and the Nepalese government may sell and distribute that land to the resident Nepalese citizens under certain conditions. In relation to such land, if the owner of the land has not received any of the compensation to be received according to this Act, and if he has received some from the farmer, the Government of Nepal will give the remaining amount to the land owner in a lump sum or in five equal installments within five years.
(2) If the farmer does not pay the amount of compensation to be paid as a lump sum or the first installment according to the restrictive clause (b) of subsection (1) of section 4, then the land will not be registered in his name.